News from Alabama

Gambling Plans Would Aid Schools - December 6, 2001

The Birmingham Race Course and Alabama's three other dog tracks could operate video gambling machines offering unlimited cash winnings, under proposals filed in the Legislature Wednesday to help raise money for public schools.

The proposal filed by state Rep. John Knight, D-Montgomery, would impose a $1,000 annual state fee and $500 annual county fee on each video gambling machine at the tracks and at hundreds of gambling parlors scattered statewide. Knight said the fee would raise $40 million to $50 million a year for public schools and colleges.

"This is just another option for getting money for the Education Trust Fund," Knight said. Unlimited cash winnings from gambling machines would be allowed only at the four dog tracks.

Everywhere else, the current per-play limit on winnings of a $5 token or ticket redeemable for merchandise would remain in effect. Sen. Hank Sanders, D-Selma, filed a gambling plan Wednesday that is similar to Knight's bill.

Knight and Sanders filed the bills on the second day of a special session Gov. Don Siegelman called to raise an extra $160 million a year for schools.

Gambling opponents predicted lawmakers would kill the video gambling plans. "Instead of taxing it, we need to shut it down," said state Rep. Mary Sue McClurkin, R-Pelham.

Lt. Gov. Steve Windom said, "It's what we expected, trying to legalize unlimited casinos at the tracks under the guise of helping the schoolchildren." "What
they're really doing is turning the tracks into casinos. It's immoral. It destroys Alabama families," he said.

Windom added that a state judge hearing a case challenging the legality of the video gambling machines soon could rule them illegal. "Any revenue that would come in would be short-lived and would be subject to a class-action lawsuit to give the money back," Windom said. But Knight and other supporters said that as long as the machines operate statewide, they should be taxed.

By David White, News Staff Writer, Birmingham News, Montgomery, AL

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